Macau Property Opportunities Fund Limited

 ("MPO" or the "Company")

Investor Update H2 2025

KEY DATA

¹ As at 30 September 2025

² Based on a US$/£ exchange rate of 1.346 as at 31 December 2025

³ Restricted by lender

All other data are as at 31 December 2025

Executive Summary

In December 2025, the Company's proposed £1.7 million placing was unsuccessful, resulting in insufficient working capital to meet a Penha Heights loan repayment. As a result, the Penha Heights loan facilities are currently in default and the Company's other lending banks have intensified loan monitoring. Furthermore, these financial challenges have contributed to a negative impact on the Company's share price.

The Company continues to engage with lenders to negotiate loan extensions and restructuring to allow time to stabilise its capital structure and accelerate asset disposals.

Despite a continued downturn in Macau's residential market, the Company's divestment programme progressed in H2 2025 with the sale of nine Waterside units and the one remaining Fountainside Villa. Market conditions were seen to marginally improve due to recent government measures, including reduced stamp duty charges and more relaxed mortgage lending rules.

Portfolio Overview

The Waterside

In H2 2025, the Company sold an additional nine units at The Waterside. Recent transactions showed slightly improving trends, with units transacting at narrower discounts to valuation compared to earlier quarters. The Company is negotiating the sale of additional units with several potential purchasers. The Company's available cash resources continue to be restricted by its lender to satisfy covenant conditions, but further cash is expected to be released once further sales are successfully completed.

 A total of 45 units have been sold since the divestment programme began in mid-2022, with 14 units remaining available for sale at the end of 2025. With a number of purchasers expressing a preference for tenanted units, some remaining units, covering approximately 37% of the remaining gross floor area, are let out on short-term leases.

The Fountainside

The Company sold the final villa at The Fountainside together with its car-parking space. Having now sold all the villas in the project, the Company is focused on the three reconfigured apartments and two car-parking spaces, the final units available for sale. Sales efforts for these apartments has been delayed by continuing challenges in obtaining approvals for newly built parking spaces as part of the reconfiguration exercise. The Company has held multiple discussions with representatives of the Land and Urban Construction Bureau (DSSCU) to address this and the requested documentation for final review was submitted to DSSCU in December 2025 with feedback by end Q1 2026.

Penha Heights

Penha Heights, located at the top of the exclusive and historic Penha Hill, represents among the top homes in Macau. The Company's marketing strategy leverages the regional network of ultra-high-net-worth clients maintained by a Hong Kong-based specialist agency. The property is also being promoted as two separate residences, in line with its land titles, to make the pricing more accessible than selling it solely as a single asset.

Following the unsuccessful fund raising, the Company is actively engaged with lenders exploring a variety of options, including asset sales and loan restructuring. Marketing initiatives have generated consistent interest and property viewings, though these have not yet resulted in firm offers, although encouragingly, some traction has been achieved recently with a prospective purchaser. The Company believes that slightly improved sentiment in Macau may provide better opportunities for achieving a divestment.

Property

In the second half of 2025, Macau's property market showed some signs of recovery. After a first half characterised by stabilised transaction volumes, but falling prices, the market further stabilised later in the year, with both transactions and prices recovering. Q3 residential transaction volumes rose 19.2% QoQ to 955 units, despite a YoY drop of 19%. Residential unit transaction prices in Q3 also increased by 8% QoQ, while decreasing 14% YoY.

Developers have been using more aggressive pricing strategies to clear pre-sale inventories, drawing buyers toward new projects with attractive discounts. This has diverted demand away from second-hand homes, prompting sellers in the secondary market to cut prices to close deals. Consequently, the secondary market experienced steeper declines in both transactions and prices than the broader property market. By the end of October 2025, transaction volumes were down 11.8% YoY, while prices had fallen 17.8% YoY.

Luxury Market Dynamics

In the luxury residential segment, transaction volumes have tracked the overall market weakness. Luxury residential units spanning over 150 sqm totalled 46 units in Q3 2025, representing a YoY decrease of 19%, but a QoQ increase of 48%, possibly indicating early signs of stabilisation in the premium segment. High-end buyers remain cautious after recent price declines and continue to wait for clearer recovery signals. Mainland investor demand is constrained by capital controls and financing scrutiny, while local income growth outside gaming is limited. The luxury segment is stabilising rather than rebounding, with activity improving selectively since the recent government measures, but buyers retaining strong bargaining power.

Government Measures to Revitalise Property Sector

In its 2026 Policy Address, the Macau government unveiled several initiatives aimed at revitalising the property market. The first MOP6 million of a residential property's purchase price will now be exempt from stamp duty, up from the previous threshold of MOP3 million. In addition, mortgage rules are being eased, with the permitted loan-to-value ratio raised from 70% to 80%, making it easier for buyers to obtain financing.

Although industry participants generally view these steps positively, many believe they will fall short of fully restoring market momentum. The measures are expected to lift transaction activity for entry level units; however, while they may help stabilise prices and curb further declines, they are unlikely to spark a strong rebound in property values without additional stimulus.

Economy, Tourism & Gaming

After a slow start in the first half of 2025, Macau's Gross Domestic Product (GDP) powered to 8.0% growth YoY in the third quarter of 2025, fuelled primarily by a 13.6% rise in visitor arrivals. For the first nine months of the year, GDP grew 4.2% YoY to 88.4% of pre-pandemic levels. Analysts have forecasted full year GDP growth for the territory of 5.4% YoY

2025 proved to be a record-breaking year for visitor arrivals in Macau. Full-year arrivals of 40.06 million have now established a new all-time high for the territory, exceeding the previous peak of 39.4 million set in 2019 by 1.6% and surpassing 2024 arrivals by 14.7%.

In the second half of 2025, in line with the surge in visitor arrivals, gaming revenue saw several record-setting double-digit year-on-year growth months. October 2025 recorded MOP24.09 billion (c.US$ 3 billion), the best monthly performance since January 2020, representing a 15.9% YoY increase. As at November, the year-to-date gaming revenue was approximately MOP226.5 billion (c.US$ 28 billion), which is 8.6% higher than the first 11 months of 2024.

Outlook

Despite global and regional volatility, Macau's headline economic numbers have demonstrated the territory's resilience. Growth forecasts for full year 2026 GDP have ranged from 2% to 5%, which translates to approximately 93% of 2019's pre-pandemic levels.

Despite strong economic fundamentals and continued growth, Macau's economic activity has been primarily concentrated in the tourism and gaming sectors. There has been limited spillover to the luxury residential market, which remains subdued. High-end buyers remain cautious following years of price declines and continue to wait for clearer recovery signals.

In light of these challenges, the Company will continue to vigorously progress its divestment strategy, while working with lenders to stabilise its financial position and execute its divestment programme. The Government's comprehensive policy package, combined with strong economic fundamentals, creates a more supportive environment for residential property sales in 2026.

 About Macau Property Opportunities Fund

Premium listed on the London Stock Exchange, Macau Property Opportunities Fund Limited is a closed-end investment company registered in Guernsey and is the only quoted property fund dedicated to investing in Macau, the world's leading gaming market and the only city in China where gaming is legalised.

Launched in 2006, the Company targets strategic property investment and development opportunities in Macau. Its current portfolio comprises prime residential property assets.

The Company is managed by Sniper Capital Limited, an Asia-based property investment manager with an established track record in fund management and investment advisory.

Stock Code

London Stock Exchange: MPO

LEI

213800NOAO11OWIMLR72 

For further information:

Manager

Sniper Capital Limited

Group Communications

Tel: +853 2870 5151

Email: [email protected]

Corporate Broker

Panmure Liberum

Darren Vickers

Tel: +44 20 3100 2222

Company Secretary & Administrator

Ocorian Administration (Guernsey) Limited

Kevin Smith

Tel: +44 14 8174 2742